We would like to remind you of the upcoming deadline for the obligation to submit certain information regarding real estate companies for 2022 to the competent tax authorities (for most taxpayers, the deadline is 31 March 2023).
The entities obliged to submit the information are real estate companies and PIT/CIT taxpayers who hold (directly or indirectly) in a real estate company:
- shares (stocks) giving at least 5% of the voting rights in the company, or
- an accumulation of rights and obligations giving at least 5% of the right to share in the profit of a company that is not a legal entity, or
- at least 5% of the total number of participation titles or rights of a similar nature.
We point out that real estate companies are, in simplified terms, entities in which more than half of the assets are related to real estate, and their total value exceeds PLN 10 million. If the company has been operating for more than a year, in addition to the above-mentioned conditions, at least 60 per cent of its revenue should come from real estate, e.g. lease, sublease, rental, sub-tenancy, leasing, transfer of ownership, the subject of which are real estate or rights to real estate (for a detailed definition, see Article 4a point 35 of the CIT Act and Article 5a point 49 of the PIT Act). We would also like to remind you that companies engaged in real estate development activities may be deemed to be real estate companies.
At the same time, we would like to inform you that in accordance with the general interpretation of the Minister of Finance of 28 February 2023, No. Dd5.8203.7.2022, the information obligation applies both to entities that are Polish tax residents and to entities that are not Polish tax residents, i.e. entities without a place of residence or a registered office or management on the territory of Poland. The Minister of Finance has also indicated that with respect to taxpayers holding rights to a real estate company, the information obligation arises regardless of whether income (revenue) from this participation has been obtained from any source.
We would like to point out that the provisions covering the definition of a real estate company and the information obligation in question may raise certain doubts and therefore, in individual cases, it may be necessary to carry out an in-depth analysis and verification of certain source data.
Source: article prepared by our cooperation partner TaxAGroup
If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:
CUSTOMER RELATIONSHIPS DEPARTMENT
Head of Customer Relationships
Department / Senior Manager